Broad-based intangibles as generators of growth in Europe

This paper analyzes broad performance-based measures of intangibles in European Union countries to find new sources of growth and shows that intangible capital (IC)-driven growth was halted in European industries during the 2008–2013 financial crisis period. Much of this IC, such as purchased organizational, research and development (R&;D) and information and communication technology capital, is unaccounted for in systems of national accounts, so that total IC investment is 29.6% of value added, with R&;D having the lowest gross domestic product share at 5.0%. On average, deteriorating IC growth has decreased labor productivity by ?2.9% annually. Policies fostering multifactor productivity growth have been strongly biased and have ignored the loss of those skills necessary for long-term growth. During 2008–2013, innovation thus failed to compensate for Europe’s dwindling fixed-capital-intensive manufacturing and job losses, but broad-based IC offers a roadmap for recovery by relying on an increasing role for IC-producing services.     

On the Existence of Undominated Nash Equilibria in Normal Form Games

In this paper the existence problem of undominated Nash equilibrium in normal form games is analyzed. It is shown that an undominated Nash equilibrium exists, if (a) strategy sets are convex polytopes inRⁿand (b) utility functions are affine with respect to each player's own strategy. It is shown by counterexamples that, first, it is not sufficient to have concave utility functions instead of affine under condition (b) even when condition (a) is satisfied, and, second, it is not sufficient to have just compact and convex strategy sets instead of polytopes in condition (a) even when condition (b) is satisfied.     

A Process Perspective on Organizational Innovation Adoption – A Qualitative Case Study

The purpose of this study is to scrutinize organizational innovation adoption from a process perspective. This qualitative single-case study is based on ten thematic interviews within the food-processing industry. The results accentuate the embedded nature of organizational innovation adoption in that the process studied was entangled with the company’s previous and current business processes and with its future visions.     

How Investors Trade Around Interim Earnings Announcements

Abstract:   This study focuses on non‐institutional trading behaviour around interim earnings announcements in the emerging market. We separate the stock trading activity of Finnish households into five trading classes and compare the results to institutional trading. Data covering the years 1996–2000 shows that earnings news triggers trading in every trading class. We also find some evidence that actively trading individuals especially (compared to passively trading ones) show increased buying and selling activity before the event compared to the non‐event period. After the event we find that Finnish households in the most active investor class tend to follow a contrarian strategy, especially selling after good news. This adds to previous evidence by Grinblatt and Keloharju (2000b) . Furthermore, the performance of the active investor classes is superior to that of passive ones. Finally, the institutional trading class is clearly less affected by the announcement than the active investor classes, suggesting that institutions utilize a broader information set than individual investors.     

Intangible investment in people and productivity

Organizational activity, information and communication technology work, and research and development (R&D) can be classified as work that creates intangible capital. We measure the returns to these three types of labor input by accounting for differences in their productivity compared with other labor inputs using Finnish firm-level data from 1998 to 2008. We apply a novel idea to use hiring as one proxy for productivity and demand shocks. We find that organizational workers increase total factor productivity and improve the profitability of high-productivity firms. R&D workers account for a large share of intangible capital; however, the returns to R&D are low. Investments in organizational competence are more likely to result in more rapid productivity growth. Firms with performance-related pay or domestically owned firms with extensive foreign activities have been among the highest performers with respect to the use of organizational work.     

Uncovering consumers’ returning behaviour: a study of fashion e-commerce

Abstract

The increasing prominence of e-commerce is shaping the nature and dynamics of retailing. E-commerce offers consumers lower prices, wider product categories and a more convenient shopping experience. In addition, consumers seek ways to manage the risk that is often perceived when making purchases online, which is why retailers’ online return policies have become an increasingly important attribute through which companies compete. Lenient return policies fuel unnecessary ordering and increase return rates, which in turn has major implications both for consumer behaviour and for managing the increasingly complex ecological and economical issue of online returning. Despite its relevance, prior research has paid limited attention to this evolving phenomenon. Consequently, the purpose of this study is to explore and analyse online returning behaviour in the context of fashion merchandise. As a result, 10 categories of online returning behaviour are identified that capture the reasons why consumers actually return items they have ordered online. These categories are further linked with when the decision to return ordered items emerges. Based on the results, managerial implications are provided to give guidance in managing online returning behaviour.     

Measurement of power,probabilities, and alternative models of man

Starting from Max Weber’s definitions of power we discuss the meaning of his concept Chance and its relationships to the probabilistic notions that play a central role in definitions of indices of measuring voting power. Using Martin Hollis’s distinction between two models of man—plastic and autonomous—we argue that the common measures of voting power when interpreted in terms of probabilities seem to be in better conformity with the model of plastic man than with the model of autonomous man. The paper elaborates on the probability interpretation with applications to the modelling of power measures with a priori unions and to the concept of “real voting power” based on relative frequencies of historical events. Power as potential—which in our view is what Weber very likely meant—remains an elusive concept, but one that should be amenable to game-theoretic analysis.